Wells Fargo: $7 Fee Winner

Banks stocks led the broad market again on Thursday, and Wells Fargo led the banks, with shares rising over 3%.

NEW YORK ( TheStreet) -- Wells Fargo ( WFC) was the winner among the largest U.S. banking names on Thursday, with shares rising over 3% to close at $31.39.

Once again, all eyes were on Europe, as Greece was expected to finalize its agreement with private bondholders over a discounted swap that could lower the country's debt by over 200 billion euro. Newswires reported that participation among investors had exceeded 75% late on Thursday. The debt restructuring is a required before Greece can receive a 130 billion euro bailout package.

Wells Fargo's shares have now returned 14% year-to-date, following a 10% pullback during 2011.

The company stands out as the best and most consistent earner among the "big four" U.S. bank holding companies, with quarterly returns on average assets (ROA) ranging from 1.21% to 1.27% over the past year, according to data supplied by HighlineFI.

The shares trade for 1.7 times book value and 10 times the consensus 2012 earnings estimate of $3.20 a share, among analysts polled by Thomson Reuters. The consensus 2013 EPS estimate is $3.69.

Reuters reported on Thursday that Wells Fargo was notifying customers in Georgia, New Jersey, Delaware, Connecticut, New York and Pennsylvania, that the bank's "Essential" checking account would no longer be free, but would have a $7 monthly service charge, unless customers kept minimum balances of $1,500 or had at least $500 a month in automatic direct deposits coming in.

A Wells Fargo spokesperson confirmed the Reuters report, and said the company expected 80% of its customers to avoid the new fees.

While Wells Fargo will obviously be dealing with some fee fallout over coming days, investors are eyeing an increased return of capital, which is expected after the Federal Reserve publicly announces the results of its annual bank stress tests next week.

The company is currently paying quarterly dividend of 12 cents a share, translating to a yield of 1.53%.

During the fourth quarter, the company repurchased 27 million common shares, with another 6 million in forward repurchases that were to settle during the first quarter.